It is always advisable to seek out the assistance of experienced professionals for taking up intricate jobs which might be out of our league. Just like we visit a mechanic for undertaking big repair works,
financial planners can assist us in coming out of a monetary mess. However, the word financial planner brings under its banner people belonging to a plethora of different sub-professions. Today we are going to take a look at the same for gaining more ideas about the different types of financial planners.
- Accountant – They can assist us in preparing and filing our tax return in the correct fashion for avoiding the scrutiny of income tax department in later stages. With profound subject knowledge, they can help in claiming tax deductions and exemptions to the fullest so that we can reduce our tax burden.
- Stockbroker – A broker-dealer is involved in the task of purchasing and selling shares for ensuring maximum return over the course of time. With Indian stock market showing fluctuating trends, it becomes imperative to seek out the help of a professional who brings both subject knowledge and on-job experience to the table for solving all your queries. These registered representatives earn commissions on the transactions performed up by them.
- Registered Investment Advisor – This type of financial planners offer advice on the matter of securities to their clients. However, first, they will require to get registered as an investment advisor under SEBI. On completion of the registration process, they come under obligation of placing their clients under supreme priority time and again. Given the fact that most Indian financial products come with the lure of a hefty commission amount, these products might sometime seem to be highly complex for general investors to comprehend. This is why SEBI segregated the distributional and advisory services to third party advisors who can provide a non-biased take on the options available in the financial sphere. On availing the services of a RIA, an investor can carry out his investments without having to worry about conflict of interest. A fee is paid by the investor in return of the services of a RIA which in turn urges them to protect the interest of investors by making recommendations which can be best suited to the investor’s need.
- Certified Financial Planner– This certificate level financial planning program is considered as gold-standard for financial planners. They can assist in matters of financial intricacy such as managing an organization’s financial accounting, conducting evaluations and reviews in search of cost-reduction opportunities, developing mechanisms for reducing the financial risk as well as monitoring and reporting the existent financial systems. Accredited CFPs can assist you in coming up with a comprehensive financial plan by surveying customer information, actualizing technique and observing potential risk to accomplish monetary objectives. Certified Financial Planners can also operate as mutual fund advisors, portfolio managers, risk analysts, financial advisors, financial products marketing specialists, retirement planning advisors, wealth fund managers, financial product designers etc.
- Insurance Agent – They are individuals who can help people in selecting an insurance policy which shall be in sync with their specific requirements. While certain financial planners are accredited to render insurance advice or sell such products, other might turn to a licensed professional for expert recommendations.
Picking up the right financial planner is of supreme importance since that person will be directly responsible for the growth of your corpus over years. And now that you have gained an understanding on personal financial planning advisors, you can take the final call regarding the ones you need to strengthen your financial team.